4 february 2021

Denmark agrees framework for USD-34bn wind energy island project

Ivan Shumkov, Renewables Now, February 4, 2021

February 4 (Renewables Now) - Denmark has reached a broad political agreement to build an artificial island in the North Sea surrounded by offshore wind turbines that form the world’s first energy hub with a potential capacity of 10 GW.

The total cost of the project is estimated at DKK 210 billion (USD 33.9bn/EUR 28.2bn), including work on the island, the infrastructure and associated offshore wind farms. It will be realised in phases, starting with 3 GW of capacity.

According to a press release by the Ministry of Climate, Energy and Utilities, the planned hub will generate “yet unseen amounts of green electricity” and will be able to meet the power demand of roughly 10 million European homes when fully completed.

”The energy hub in the North Sea will be the largest construction project in Danish history,” said the Danish Minister for Climate, Dan Jørgensen.

The artificial island will be constructed some 80 km (49.7 miles) from the shore of the peninsula Jutland. It will have a total area of 120,000 square metres (1.29 million square feet) in its initial phase and become as large as 460,000 sq m upon completion. Between the first and final stages of the project, it could accommodate 200 to 650 turbines of "unprecedented size.”

The project also envisages building a harbour and facilities for the storage of electricity, which would then be converted to liquid green fuel and sent via subsea cables to Denmark and neighbouring countries.

Since the government wants to realise this project through a public-private partnership, it plans to open a tender to select private partners. Ultimately, the state will own the majority of the island.

Denmark, which currently ranks as the largest oil producer in the EU, last year introduced a cutoff date of 2050 for fossil fuel extraction in the North Sea, cancelling all future licensing rounds. The Danish government also has plans for a second energy hub of 2 GW, to be established on the island of Bornholm in the Baltic Sea.

The nation’s total installed offshore wind capacity at this point amounts to 1.7 GW.

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